Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of shares of common stock, par value $0.0005 per share, (the “Common Stock”) outstanding during the period. Diluted EPS reflects the potential dilution of securities that could share in earnings. Potential shares of common stock are excluded from the computation of diluted earnings per share when their effect would be anti-dilutive.

The table below sets forth the calculation of basic and diluted income per share for the periods indicated (in thousands, except per share data).


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
Numerator:
Net income used for calculating basic and diluted income per share	$	275,498	$	240,783	$	497,842	$	451,722
Denominator:
Weighted average common shares used in the calculation of basic income per share	66,501		77,157		68,149		77,257
Dilutive effect of outstanding awards associated with stock-based compensation plans (1)	80		202		139		349
Shares used in the calculation of diluted income per share	66,581		77,359		68,288		77,606
Basic income per share	$	4.14	$	3.12	$	7.31	$	5.85
Diluted income per share	$	4.14	$	3.11	$	7.29	$	5.82

(1)Certain outstanding awards associated with stock-based compensation plans were not included in the computation of diluted income per share because the effect would have been anti-dilutive. These anti-dilutive outstanding awards associated with stock-based compensation plans was 1.0 million and 0.4 million for the three months ended June 30, 2026 and 2025, respectively, and 0.9 million and 0.3 million for the six months ended June 30, 2026 and 2025, respectively.